Trump dump: Bond prices lose $1T as investors fear higher debt and inflation
To borrow a phrase from the president-elect, there's an apt word to describe the bond market's reaction to the prospect of a Donald Trump presidency.
Huge.
It's been barely a week since Donald Trump won the U.S. presidential election, and while the U.S. stock market has so far reacted positively to the news, the much larger bond market has taken the opposite view.
On the campaign trail, the Republican nominee made waves with his talk of trade wars, higher tariffs and deficit spending. That's prompted fears of higher debt, higher inflation and higher interest rates — three things that are bad news for bond prices.
Unlike other asset classes, the price of the bond goes in the opposite direction to what's known as its yield — the amount, in percentage terms, that it will pay out.
Trump dump: Bond prices lose $1T as investors fear higher debt and inflation - Business - CBC News
To borrow a phrase from the president-elect, there's an apt word to describe the bond market's reaction to the prospect of a Donald Trump presidency.
Huge.
It's been barely a week since Donald Trump won the U.S. presidential election, and while the U.S. stock market has so far reacted positively to the news, the much larger bond market has taken the opposite view.
On the campaign trail, the Republican nominee made waves with his talk of trade wars, higher tariffs and deficit spending. That's prompted fears of higher debt, higher inflation and higher interest rates — three things that are bad news for bond prices.
Unlike other asset classes, the price of the bond goes in the opposite direction to what's known as its yield — the amount, in percentage terms, that it will pay out.
Trump dump: Bond prices lose $1T as investors fear higher debt and inflation - Business - CBC News
